How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA?
A) Form W-2
B) Employee earnings record
C) Form W-4
D) Payroll register

Question

Quizplus · Accepted Answer

A payroll accountant keeps track of an employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA through an employee earnings record. This record summarizes the gross pay, deductions, and net pay for each employee for each payroll period and accumulates the year-to-date totals for all of these categories. This information is then used to calculate and report the taxes owed. The other options listed (Form W-2, Form W-4, and payroll register) are important documents in payroll accounting but do not specifically track year-to-date earnings for tax purposes.

How Does a Payroll Accountant Keep Track of Employee's Year-To-Date